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More than 150 organisations, including Age UK and Refuge, have warned the supported housing sector is on the precipice of a financial crisis that could plunge tens of thousands of vulnerable people into homelessness.
In a letter to the government being delivered on Friday, public bodies, charities and housing associations called for urgent action to save the sector, which provides homes for 500,000 people across England with complex needs.
They said funding cuts and rising costs had pushed providers to breaking point, and that organisations providing nearly one in five (18%) of all supported homes are on the verge of closing down services – which would lead to the loss of 70,000 homes.
The National Housing Federation (NHF) found that a third of providers in England said they may have to stop providing supported housing altogether due to financial pressure, and 32% have closed homes down in the past 12 months.
These included homes for young people leaving care, older people and veterans, people with learning disabilities, survivors of domestic abuse and people who had been homeless.
Kate Henderson, chief executive of the NHF, said: “Without urgent action from the government there is a real risk that we lose tens of thousands of homes that were founded on the intrinsic mission to give people with support needs a solid foundation, so they can thrive and live independently.
“Today, over 150 organisations join us in urging the government to take action to save our supported homes, services that are also key to enabling the government to deliver on its missions, relieving pressure on the NHS and multiple public services. The upcoming spending review is a crucial opportunity to commit the investment needed to secure the future of supported housing.”
While demand is rising, the number of supported homes across the country is falling, with a net loss of 3,000 in the past three years. There are now fewer supported homes than there were in 2007, and an estimated shortfall of 325,000 units.
Research has found a lack of supported housing is now the biggest reason for delayed discharges from mental health hospitals in England, costing the NHS about £71m. Without the sector, the country would need 14,000 more inpatient psychiatric places, 2,500 additional residential care places and 2,000 more prison places.
The joint letter, due to be delivered to Downing Street on Friday, has been signed by organisations including the Church of England, St Mungo’s, YMCA, Age UK, Refuge, the Royal College of Psychiatrists, Homeless Link, the Royal British Legion, the National Care Forum, and the Nationwide Foundation.
Shaoxiong Lui’s 42-year-old son Jason has autism, a learning disability and mental health problems meaning he relies on supported housing to live independently.
After spending months stuck in hospital, in 2017 Jason was placed in a one-bedroom flat by the supported housing provider Advance, which is now looking at closing homes due to cost pressures.
“The hospital couldn’t keep him but we couldn’t find anywhere for him. He can’t come home because of his health, and I was already 62 years old at that time. Jason has very challenging behaviours, the doctors said it was dangerous for us,” he said.
“The [supported housing] staff have become his family, and he’s happy now. He used to have two carers, now he just has one because of funding. If they closed it, I don’t know what we would do.”
Julie Layton, the chief executive of Advance, said it had a “proud history of supporting people with a range of needs to live independently”.
“But years of cuts to funding mean we are now having to consider the viability of several of our schemes, including the one where Jason lives. It would be a tragedy to see the progress that has been made over the past 50 years unravel,” she said.
“The savings reaped by funding and investment in care services make it a sector that must be prioritised – in terms of both human and financial costs to the country.”
Supported housing, which is commissioned by councils based on local need, has dwindled since 2009 when ringfenced funding for housing-related support was removed, and increasingly cash-strapped local authorities diverted funding elsewhere.
Some councils have been forced to decommission supported housing services altogether, and the National Audit Office calculated that funding for supported housing was cut by 75% between 2010 and 2020.
A Ministry for Housing, Communities and Local Government spokesperson said: “We recognise the vital role played by supported housing in helping vulnerable people to live independently and well, and the contribution it makes to tackling rough sleeping and timely hospital discharge.
“That’s why we’re taking urgent action to fix the broken system we inherited through our plan for change, investing £2bn in 2026-27 to deliver the biggest boost in social and affordable housebuilding in a generation and we will set out further details in our long-term housing strategy later this year.”
